Civil servants attempted to hide Holyrood cost increases

Senior civil servants attempted to hide cost increases on the Holyrood parliament project, the Fraser inquiry into the contract has heard.

Bill Armstrong, the former Holyrood project manager, said there was an official budget of £50m and a rapidly rising unofficial budget which was not publicised.

The current estimate of Bovis Lend Lease's contract has been put at £401m, compared to its original estimate in the devolution white paper of £40m.

Increases began to show once the designer, Enric Miralles, was selected and the amount of accommodation was adjusted.

However, Armstrong, who resigned from the Holyrood project in frustration at delays in it, told the inquiry that these cost rises were concealed.

He was asked what the budget was in October 1998, 13 months after the referendum on devolved government for Scotland. Officially, he said, it was put at £50m, but unofficially it was almost £57m and by November it was £74m.

Armstrong said senior civil servants instructed him not to reveal the increase.

When MSPs voted seven months later to continue the project, the cost was put at £63m.